Limitation and natural justice in service tax appeals: marginal delay cannot justify rejection without hearing, matter remanded on merits.

An appeal against an adjudication order was treated as filed within the prescribed limitation period when the date of dispatch was taken as the relevant date, and any delay was only marginal within the further period allowed by the proviso. Rejecting the appeal as time-barred without seeking a condonation application was held to deny a reasonable opportunity of hearing and offend audi alteram partem. The cited precedent was distinguished because the delay there exceeded the statutory outer limit. The rejection order was set aside and the matter remanded to the Commissioner (Appeals) for decision on merits.

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Issues: Whether the appeal before the Commissioner (Appeals) was barred by limitation and whether the appeal had to be remanded for decision on merits.

Analysis: The appeal against the adjudication order was filed within the two-month period prescribed under Section 85 of the Finance Act, 1994 when the date of dispatch was treated as the relevant date for filing. The delay, if any, was only of a few days and fell within the further period contemplated by the proviso. Rejecting the appeal without calling for an application seeking condonation of delay deprived the appellant of a reasonable opportunity of hearing and offended the principle of audi alteram partem. The reliance placed on the cited precedent was held inapplicable because the delay there exceeded the statutory outer limit, unlike the present case.

Conclusion: The order rejecting the appeal as time-barred was set aside and the matter was remanded to the Commissioner (Appeals) for adjudication on merits.

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